Taxiing toward taxi reform

Barely anyone is happy with the state of the taxi system in San Francisco. Passengers say it’s too hard to find a cab. Drivers say it’s nearly impossible to make a decent living. Many in the industry complain that the current system of issuing taxi permits or medallions is unfair or unreasonable. And so it’s been for many years, with nobody either willing or able to take on reform.

But that’s about to change. A year ago Mayor Gavin Newsom suggested auctioning off medallions to the highest bidders, but the plan was stalled for more study. Now The Municipal Transportation Agency is prepared to jump into middle of the mess with a proposal that would encourage older medallion holders to sell them to people at the top of the waiting list.

It will introduce its proposal at Tuesday’s agency board meeting. A decision is likely in the next couple of months.

To get one of the city’s 1,500 medallions now, drivers sit on a long waiting list for about 15 years until a permit is available. Medallion-holders pay about $500 a year, and lease the permits to drivers without them. Many of the permit-holders hang onto the licenses as a source of income, and tend to be older.

The plan, which would raise about $11.2 million between now and June,would offer medallion holders 70 and older the choice of:

— Selling the medallion at a fixed price determined by the agency to the next person on the waiting list.

— Surrendering the medallion to the agency in exchange for a monthly payment for life.

— Keeping the medallion and meeting the existing regulations, including driving a cab at least 800 hours a year.

The agency would also sell the medallions it obtained to the next person on the waiting list. It would also revoke the licenses of all medallion holders not satisfying their driving requirement.

An industry advisory group would oversee the process, evaluate the program and develop recommendations on a permanent overhaul of the medallion system by the end of 2010.

“We continue to work toward a taxi reform proposal that has broad consensus and will generate revenue while providing revenue,” said Judson True, agency spokesman.

And that’s a task about as difficult as hailing a taxi at 5 p.m. on a Friday.